At least once a year. It might sound like a lot of work but realistically, if you don’t review your insurance policies yearly, you’re in danger of overpaying for insurance and/or being improperly insured.
Insurance companies change.
Each year, insurance companies are reviewing key statistics to see what changes they need to implement to maximize profit. Judging by their marketing, it seems as if insurance companies are there for us, not their own gain. However, as mentioned in this blog, insurance carriers consider a lot of things, including how much they pay out in claims, when making rate adjustments. These considerations include:
- Number of yearly customers
- Amount of expected yearly insurance payments
- Previous year’s income
- Amount of claim payments
- Yearly expenses
Insurance companies adjust—this is a fact you can count on. Sometimes these adjustments are in your favor; most of the time they aren’t. Sometimes the changes are big but most often, they are small and gradual. Their goal is to make modifications in ways that prevent you from feeling them when it’s time to renew your policy. They want to maximize profit while also ensuring you don’t start shopping elsewhere.
The bottom line: review your policies yearly to ensure your insurance company is still offering you the most competitive pricing.
Beyond growing a year older, you may have other changes. Income, job, family size, address, and more are things that impact the pricing of insurance but more importantly, the type of insurance you need. There are few things more frustrating than filing a claim only to realize your insurance covers just a portion of the claim, or worse—doesn’t cover it at all. You can prevent this and ensure the policy you have properly covers your needs by reviewing your insurance each year.
If you haven’t had any major life changes, it’s almost guaranteed that the balance in your savings account has changed. As a result, you must review the deductible you have on your insurance policies. This blog talks about how your savings account directly relates to your insurance rates.
Good news, you don’t have to do this alone!
A good, independent insurance agent can do this due diligence process on your behalf. At Stewardship Insurance we do this each year, for every single customer. You don’t even have to ask—it’s already part of our process.
One of our customers described it like this:
“I received a call from Stewardship letting me know that they had reviewed our annual renewal for our insurance. Turns out, we were able to save $600 per year! I love this company!”
If you want in on Danny’s experience, schedule an appointment below. We would be honored to help!